What is ISO 9001?
ISO 9001 is the standard against which the Quality Management System of a business is evaluated.
It can be applied to all companies; therefore it is worded to allow it to be adaptable and non-prescriptive. It is, however, intended to demonstrate that a business can provide a consistent standard of quality.
Most importantly, it is a common sense and practical method for improving procedures.
Most companies are already operating many of the requirements of the Standard but have not documented them.
Why ISO 9001
Being able to achieve a significant competitive edge over your rivals is the major benefit that ISO 9001 Certification brings.
Recent surveys reveal that almost 80% of businesses sought ISO 9001 Certification because of their need to increase or maintain their market share.
Another survey amongst firms having gained ISO 9001 Certification showed that:
| Profits increased | – Costs lower due to less wastage |
| Sales increased | – Fewer orders lost |
| Exports increased | – Internationally recognized |
| Management was more effective | – Less time wasted |
| More prospects were realized | – ISO 9000 can open doors restricted to only Certified suppliers |
Benefits of ISO 9001:2000
When ISO 9001:2000 is implemented in an organization:
1. As an effective marketing tool:
- Access to new markets
- Some markets require ISO 9001 Registration, some markets favor companies with ISO 9001 Registration
- Customer request
- Many organizations are asked by a customer to obtain registration as a requirement to continue or to start doing business with them.
2. Well defined and documented procedures improve the consistency of output quality:
- Quality is constantly measured
- Procedures ensure corrective action is taken whenever defects occur
- Defect rates decrease
- Defects are caught earlier and are corrected at a lower cost
- Defining procedures identifies current practices that are obsolete or inefficient
- Documented procedures are easier for new employees to follow
- Organizations retain or increase market share, increasing sales or revenues
3. Reduced costs are obtained through:
- Improved product reliability
- Better process control and flow
- Better documentation of processes
- Greater employee quality awareness
- Reductions in product scrap, rewords and rejections
Top reasons given for registration:
- Internal operational efficiency
- Lower production costs because of fewer nonconforming products, less rework, lowered rejection rates, streamlined processes and fewer mistakes.
- Access to new markets
- Some markets require ISO 9001 Registration, some markets favor companies with ISO 9001 Registration
- Customer request
- Many organizations are asked by a customer to obtain registration as a requirement to continue or to start doing business with them.
- Reducing costs
- Organizations are recognizing that an effective Quality Management System leads to reduced costs and greater operating margins